Business Characteristics Vocab

Question 1

Raw Goods

Answer 1

Materials derived from natural resources

Question 2

Processors

Answer 2

Businesses which change raw goods into a more finished form, known as processed goods

Question 3

Cooperation

Answer 3

Process of effectively working together in a group setting

Question 4

Maslow’s Hierarchy of needs

Answer 4

pyramid expressing the needs of people in levels: basic needs, safety, belongingness, love, esteem and self-actualization

Question 5

Human Resources

Answer 5

Department responsible for maintaining the employment process, training and developing staff, and following laws and proper procedures

Question 6

Non-Profit Organizations

Answer 6

Businesses which provide goods and services to businesses and individuals, but operate on donations, volunteers and philanthropists rather than profit

Question 7

Service Firms

Answer 7

Businesses which provide services to consumers and other businesses

Question 8

Manufacturers

Answer 8

Businesses which change raw or processed goods into finished goods

Question 9

Producers

Answer 9

Businesses which develop products for distribution from raw goods

Question 10

Management

Answer 10

Process of reaching a company’s goals and objectives by utilizing its resources; department responsible for the management process

Question 11

Accounting

Answer 11

Process of recording, classifying, summarizing and reporting the financial position of a business

Question 12

Assets

Answer 12

Items of value owned by a business

Question 13

Accounting equation

Answer 13

Assets= Liabilities+ owner’s equity

Question 14

Balance sheet

Answer 14

Financial statement which reports totals in assets, liability, and owner’s equity accounts

Question 15

Income Statements

Answer 15

Financial statement which reports net income of net loss of a company

Question 15

Finance

Answer 15

Department responsible for managing the use of company funds, and creating a financial plan

Question 15

Marketing

Answer 15

Department responsible for creating products which meet consumer wants and needs, guiding products through the product life cycle, and understanding consumers through marketing research

Question 16

Marketing mix

Answer 16

Four interrelated marketing strategies used to meet consumer needs; consist of product, price, promotion and place

Question 17

Product life cycle

Answer 17

Marketing theory stating the stages experienced by products and services from their introduction to their decline; consists four stages; introduction, growth, maturity and decline

Question 18

Production

Answer 18

Department responsible for producing goods and services in the most efficient and cost effective manner

Question 19

Distribution

Answer 19

Department responsible for distributing goods and services in the most efficient and cost effective manner